Coriander or cars, it's getting expensive for Indians

Meanwhile, the Economic Times daily newspaper is available online now.

Key points

• Maruti Suzuki has additionally raised costs by up to ₹30, 000 from August, its second portfolio-wide growth in concerning two months.
• Tata Consumer Products has raised the cost of a salt pack from ₹30 to ₹32.
• Tata Consumer Products has already rose the rate of a salt pack from ₹30 to ₹32.
• Hindustan Unilever expects 2-5% sequential input-cost inflation in the September quarter compared with June, with pressure from palm oil, crude derivatives, tea, coffee, milk and packaging materials.
• The pressure comes as India's retail inflation has moved above the Reserve Bank of India's 4% target.

Meanwhile, the Economic Times daily newspaper is available online now. Expensive living? Inflation hits coriander to cars in India. Expensive living? Inflation hits coriander to cars in India. ET OnlineLast Updated: Aug 21, 2026, 03: 09: 00 PM IST.

Consumer goods firms are increasing costs and reducing pack sizes. Automobile manufacturers and tyre firms additionally confirmed significant rate hikes. Rising commodity and energy costs are pressuring firm margins. India's retail inflation has moved above the Reserve Bank of India's target. Policymakers are watching for broader inflation spread throughout the economy.

For context, the next time you pick up a packet of biscuits, a tube of toothpaste or a bottle of hair oil, you may find that the cost has changed – or that there is slightly less inside the pack. As higher commodity, packaging, freight and energy costs put pressure on margins, indian firms throughout consumer goods, automobiles, tyres and paints have either already raised rates or signalled further increases. The latest round is not one giant cost shock. It is spreading throughout individual products and categories.

Tata Consumer Products has raised the cost of a salt pack from ₹30 to ₹32. Britannia is considering another 1.5-2% pricing action for biscuits. While Hindustan Unilever expects continued input-cost pressure, dabur has taken cost increases throughout parts of its portfolio. Colgate-Palmolive India has additionally left room for further rate increases Outside consumer goods, JK Tyre is planning a total 11-13% cost rise by September-end. While Hyundai Motor India has confirmed a hike of up to 1% from September, tata Motors has confirmed a hike of up to ₹25, 000 on passenger vehicles from September 1. Maruti Suzuki has additionally raised costs by up to ₹30, 000. Live Events.

Indian firms are concerning to raise rates, putting RBI's inflation outlook to test.

In practice, the pressure comes as India's retail inflation has moved above the Reserve Bank of India's 4% target. While food inflation rose to 5.52%, according to the Ministry of Statistics and Programme Implementation, consumer inflation rose to 4.45% in July from 4.38% in June. Inflation remains within the RBI's 2-6% tolerance band, but policymakers are watching whether higher food, fuel and other input costs spread throughout the economy. Kitchen inflation: even coriander is costing more.

Meanwhile, the squeeze is most visible in the everyday kitchen basket. Coriander, traditionally the little extra often handed out free with a vegetable purchase, has crossed ₹220 a kg in some markets after heavy rains disrupted supplies, according to The Economic Times. Rates of ginger, garlic and onions have additionally come under pressure. Sugar is another concern. Rates have risen sharply this month, prompting the administration to allow duty-free imports of 1 million tonnes of raw sugar until October 31 to improve domestic availability ahead of the festive season. Reuters documented that domestic sugar costs had risen almost 40% over two months.: Free dhaniya no more? India's kitchen is feeling a new food squeeze Rice is another unavoidable part of the household basket. Although the extent varies throughout regions, rates have additionally moved higher. Unlike a biscuit packet, there is no straightforward way to shrink the quantity of rice on the dinner plate. When staples such as rice, sugar, cooking oil and vegetables rise together, the impact goes directly into the monthly grocery bill. Hair oil is already getting pricier.

Dabur India offers a clear example of how FMCG firms are responding to higher costs. The firm has taken rate increases throughout parts of its portfolio and has additionally applied pack-size changes at lower rate points. Dabur's hair-oil portfolio grew around 18% in value in the June quarter, with volume expansion at 8%. CEO Mohit Malhotra remarked roughly half of the value expansion came from volume and half from cost increases. It the business took in response to higher crude-linked input costs. While revenue rose 10.6% to ₹3, 764 crore, dabur's consolidated net profit rose 15% to ₹591 crore in Q1 FY27. Its India FMCG business grew 9.5%, with underlying volume expansion of 5%, according to the company's quarterly results.: Dabur Q1 updates: Co expects double-digit revenue expansion as rural demand stays ahead of urban For consumers, the distinction is significant. When value expansion is substantially higher than volume expansion, part of the growth comes from consumers paying more. Biscuits: the ₹5 packet could obtain smaller.

Britannia Industries is considering another round of pricing action. The firm has indicated that it could take another 1.5-2% pricing action in the September quarter as sugar, palm oil and fuel costs remain elevated. Consumers may not necessarily see a higher MRP. Britannia's ₹5 and ₹10 packs are particularly price-sensitive, making smaller pack sizes one feasible way of managing higher costs. That is shrinkflation: the consumer continues to pay ₹10 but gets less product. For a household buying one biscuit packet, the difference may be tough to notice. Throughout a number of products, nevertheless, the effective cost of the weekly grocery basket can rise. Soaps, detergents and toothpaste are on the watchlist.

Hindustan Unilever expects 2-5% sequential input-cost inflation in the September quarter compared with June, with pressure from palm oil, crude derivatives, tea, coffee, milk and packaging materials. The firm has stated it will respond through calibrated pricing throughout categories covering soaps, detergents and personal care. The 2-5% figure refers to projected input-cost inflation, not a blanket 2-5% rate growth throughout HUL products. Colgate-Palmolive India is additionally facing higher input costs and has put further rate hikes on the table. While net profit rose 7% to ₹343 crore, the firm noted 12% revenue expansion to ₹1, 591 crore in Q1 FY27. Its toothpaste portfolio recorded high-single-digit volume expansion. At its annual investor day, CEO and MD Prabha Narasimhan remarked inflation "will be an issue" and indicated that the business may take further cost increases in the coming quarters to protect margins as commodity costs rise. Colgate has already taken low-single-digit pricing in the recent past. Salt, tea and cooking oil are moving differently.

Tata Consumer Products has already rose the rate of a salt pack from ₹30 to ₹32. Its June-quarter results show why FMCG firms are approaching pricing differently throughout categories. Salt revenue grew 7%, backed by steady volumes. While revenue was lower as the firm passed lower tea costs on to consumers, in tea, India volumes rose 2%. Cooking oil is facing a different set of pressures.: Tata Consumer probable to take 'calibrated' rate hikes if cost woes persist; eyes double-digit FY27 expansion India is heading for heavy soyoil imports as disruptions to sunflower-oil shipments from Russia and Ukraine alter the country's import mix. Patanjali Foods has additionally taken calibrated rate increases in its edible-oil business, according to its latest earnings commentary. For households, cooking oil is tough to eliminate from everyday consumption. Consumers can switch between varieties, but the underlying expense remains. Tyres: owning a car is getting more expensive.

In practice, the cost pressure extends beyond the supermarket. JK Tyre intends to raise costs by 11-13% by the end of September, including another 5-6% growth over the next two to three months. The firm has cited higher costs of natural and synthetic rubber, carbon black and steel. That means higher costs even for individuals who are not buying a new car. For context, the impact will be felt when a set of tyres needs replacement. Cars: another ₹25, 000 before the festive season.

For new-car buyers, the growth is more immediate. Tata Motors Passenger Vehicles has confirmed a cost rise of up to ₹25, 000 from September 1 throughout its passenger-vehicle portfolio.: Tata Motors to hike car costs by Rs 25, 000; joins Maruti, Hyundai as costs hurt pockets Hyundai Motor India has separately confirmed a rate growth of up to 1% from September throughout its portfolio, citing higher input and commodity costs and other operating expenses. Maruti Suzuki has additionally raised costs by up to ₹30, 000 from August, its second portfolio-wide growth in concerning two months. For a festive-season buyer, the higher ex-showroom cost comes before registration, insurance and financing costs. ACs and paints have already become costlier.

Meanwhile, the growth is not limited to products purchased every week. As manufacturers faced higher copper and other raw-material costs, freight expenses, a weaker rupee and new energy-efficiency requirements, air-conditioner rates rose by around 5-15% between February and April, according to industry reports. Asian Paints additionally raised costs by around 12% in July as input costs rose. The firm, even so, does not at present plan another immediate rate growth and is looking at cost efficiencies and other measures to protect margins. RBI is watching for a broader inflation difficulty.

Meanwhile, the wider concern is whether individual cost increases commence feeding into general inflation. The RBI kept the repo rate at 5.25% at its August policy session. But Governor Sanjay Malhotra cautioned: "We also need to be watchful as the risks of higher food, fuel and other input prices translating into a broad-based increase in inflation and de-anchoring of expectations persist." "Any evidence of these risks materialising may need policy tightening, " he went on. MPC member Poonam Gupta remarked there was "no scope for further monetary policy easing" and indicated that a rate hike could emerge afterwards in the financial year if inflation pressures persist. For context, the RBI has not confirmed a rate hike. The August decision remains a pause at 5.25%. But the message is clear: if higher food, fuel and input costs commence feeding into wider inflation, rate cuts could provide way to rate hikes. For households, inflation does not arrive as one percentage. It is showing up at the vegetable stall, in the grocery aisle, at the tyre shop and in the car showroom. Add Now!

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Taken together, the developments around coriander or cars, it' s getting expensive for Indians point to a situation that is still moving, and the coming days should bring more clarity.